Last week (January 22-28, 2024), the market for viscose short fibers remained stable and strong, with manufacturers mainly shipping and prices showing signs of upward adjustment. The overall stability of downstream cotton yarn is relatively strong, with an overall increase in sales. The prices quoted by yarn factories have slightly increased, and discounts have been slightly reduced. The operating load has slightly decreased to around 66%, and inventory has been basically maintained.

According to the Commodity Market Analysis System of Business Society, last week (January 22-28, 2024), the overall price of viscose short fibers remained stable and increased. As of January 28th, the domestic factory quotation for 1.2D * 38mm adhesive short fiber is 13060 yuan/ton, an increase of 220 yuan/ton or 1.71% compared to last week.

Cost wise: Last week (January 22-28, 2024), the price of raw material dissolved pulp slightly decreased, but cost support remains strong. The price of imported broad-leaved dissolved pulp is around 880 US dollars per ton, and the price of coniferous dissolved pulp is around 910 US dollars per ton. At present, the production of dissolved slurry in Hunan and Shandong facilities in China is priced at around 7400 yuan/ton, with a slight decrease in price. Actual orders are being negotiated.

Supply and demand: Last week (January 22-28, 2024), the operating rate of the adhesive short fiber industry was basically maintained, and the overall industry load is currently around 82.8%. Downstream procurement enthusiasm has improved, actively replenishing goods, and the inventory pressure of manufacturers has slightly decreased. The human cotton yarn factory mainly consumes inventory, and the enthusiasm for replenishment has increased. The human cotton yarn is stable and relatively strong, resulting in an overall increase in demand. The supply of low-priced goods in the market has slightly decreased, but the overall improvement is still limited, and market confidence is still insufficient.

Downstream cotton yarn market

Last week (January 22-28, 2024), the overall market for human cotton yarn remained stable and strong, with yarn mills offering higher prices and slightly reduced discounts. Overall shipments were average, and the operating load of human cotton yarn slightly decreased to around 66%, while inventory remained basically maintained. Most cases of slight losses maintain production, and the market lacks confidence in the later stage. As of January 28th, the average ex factory price of human cotton yarn (30S, ring spun, first-class) was 17325 yuan/ton, an increase of 150 yuan/ton or 0.87% compared to last week.

Future Market Forecast

The price center of raw material dissolution pulp is strong, with strong cost support. Downstream cotton yarn factories are approaching the holiday period, and their enthusiasm for replenishment is not high. The trading atmosphere in the viscose short fiber market will be light. The market lacks confidence in the later stage and is bearish on the market before the Spring Festival. After last week’s price adjustment, analysts from Business Society predict that the market for viscose short fibers and artificial cotton yarn will continue to stabilize and operate in the short term.